OK, duh time here …
I needed to click the Update Changes button one more time after updating the permalinks. So many pages give you an Update button whether you have made any changes or not, I didn’t think I needed to click it again. You might want to add a little something to that effect in the excellent instructions.
After looking at the code, I think the problem may be with it always thinking it is a new install. I’m using version 1.0.32 of the plugin.
If you are using GoDaddy Deluxe Shared Linux hosting (not the WordPress hosting) and your WordPress site is in a subdirectory of your hosting account’s root, you need to edit the php5.ini file in the account’s root, not in the subdirectory. Changes should show up in a phpinfo() almost immediately.